Need money to grow – now what?
Your business is a success – so far.
A few years ago, you had a vision. It came to you in a dream.
You have come up with a game changer that is truly going to make a difference. After countless hours, investments from your friends and family, and pouring everything you have into your dream – the business is a success.
You cultivated an amazing team – they are dedicated, committed and motivated.
You have attended and graduated from the best incubators and accelerators. Your business model is solid – it is producing recurring revenues. You have assets – they are real and tangible.
But now you need cash, and lots of it, to really fuel your business to help you create the next Unicorn.
You have options.
As you contemplate you next steps to inject cash into the business – you have a couple options:
- Equity investment
You have watched Dragon’s Den and Shark Tank – this is your chance to reach out to the investor community to pitch your business asking for venture capital investment. You need to be prepared to present your case, demonstrate why your dream is a game changer, is currently a success, and why the investor is going receive a reward for taking a risk on your company. You need to be prepared to give something up.
- Debt financing
Before giving up something in your business that may dilute your equity, control or shareholder value – you should consider the power of innovative debt financing to fuel your business growth.
There are many debt options available to you ranging from working capital to term loans to purchase order financing.
Debt should be customized to meet your business strategy, goals and objectives, and will take into consideration your current and future states.
It will enable you to retain equity, control and shareholder value.
- A combination of equity investment and debt financing
The right course may be a combination of the two approaches. This will depend on your business strategy, goals and objectives. It will take into consideration your current and planned future states. Most importantly, the right approach should take into consideration how these strategies will enable your dream to really make a difference.
Before making any decisions on which the right approach to is take – here are just a of items that equity and debt professionals will want to see:
- Financials and assets
- Balance sheet – Is it strong? Does it have the right rations?
- Income statement – Do you have one? Who represents your accounting and finance needs?
- Who owns what?
- How fast are you burning cash?
- Business model and plan
- Do you have a sustainable model that will continuously develop leading products and services?
- What kind of business are you? Product based? Services based?
- What is your current cash flow? What are your revenue and profit projections?
- This year?
- Next year?
- Next 5 years?
- What is your exit strategy?
- Who would buy you?
- Do you have the right tools and processes in place?
- Recurring revenue
- What is it?
- What happens when you get an order?
- How long until you receive cash into the business?
- Who and where are they?
- How are your solving their problem?
- Are there other options?
- Your team
- What does your office of the executive look like?
- Who makes up your board?
- Do you have the right legal structures and commitments in place?
- Who are they?
- What makes you different?
- How are you going to stay ahead?
Building the Next Unicorn – we are here to help.
#buildingthenextunicorn was developed to serve the start-up community. Founded with the core principle to help visionary entrepreneurs focus on their dream by utilizing proven and innovative debt capital instruments – to accelerate growth.
Our approach seeks to match your business goals, needs and current operating environment with appropriate financial tools designed to help develop a powerful balance sheet and a strong equity round negotiation position.
Don’t hesitate to reach out to us.